CYPRUS: Amount for recapitalisation of banks to be announced by Saturday

The interim report of Pimco, which will contain the amount deemed necessary for the recapitaliation of Cyprus` banking sector, will be sent on Friday evening from the United States.

CNA has learned, however, that this amount would be made public by Saturday at noon, and it is not yet clear if Pimco will be making the announcement.

Pimco`s interim report will be sent to the ten-member Steering Committee, which has been set up to follow the study being carried out by California-based Pimco.

The Steering Committee comprises representatives of the Ministry of Finance, the Central Bank, the Cooperative Central Bank, the Troika, the European Banking Authority and the European Support Mechanism EFSF/ESM.

The amount in Pimco`s report will determine the amount Cyprus will be borrowing from the Troika and whether or not the Cypriot debt will be viable, meaning that it will not exceed 120% of the country`s GDP, a condition set by the IMF for its participation in the financial aid packages for Eurozone countries which are out of the market.